NEW YORK (TheStreet) -- Nike (NKE) - Get Report stock is increasing by 3.30% to $136.20 in after-hours trading on Tuesday, after the company announced its fiscal 2016 second quarter earnings results, which surpassed analysts' estimates. Revenue, however, fell short of expectations.
After the market close, the athletic apparel and footwear company posted earnings of 90 cents per share for the quarter ended November 30, beating estimates by 4 cents.
Revenue increased by 4% year-over-year to $7.69 billion for the latest quarter, but missed estimates of $7.81 billion.
North America sales were up by 9% and Greater China sales jumped by 24%, offsetting a 1% decline in Western Europe and a 6% drop in Central and Eastern Europe.
"Our strong Q2 growth and profitability show that Nike continues to drive real momentum through the category offense - by going deep with consumers by sport and serving them completely," CEO Mark Parker said in a statement. "And our powerful global portfolio of businesses, combined with strong financial discipline, continue to drive significant shareholder value."
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate NIKE INC as a Buy with a ratings score of A+. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: NKE